In a Decision-Making Scenario, If It Is Not Known Which

question 17

True/False

In a decision-making scenario, if it is not known which of the states of nature will occur but the probabilities of occurrence of the states are known the scenario is called decision-making under risk.

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Definitions:

Defense Mechanism

Psychological strategies used unconsciously to protect oneself from anxiety or uncomfortable emotions and thoughts.

Rationalization

A defense mechanism in psychology, where controversial behaviors or feelings are justified and explained in a seemingly rational or logical manner to avoid the true explanation.

Justifies Act

A rationale or reason given for taking a specific action, often framed in moral, logical, or practical terms.

Compromise Mechanism

A psychological strategy where conflicting demands are met by finding a middle ground or mutual concession, thus reducing internal tension.